Sacramento council approves NBA Kings arena deal

Sacramento Mayor Kevin Johnson celebrates with the Crown Downtown members after the city council voted to finance an entertainment and sports center at City Hall on March 26, 2013 in Sacramento, Calif. Sacramento's City Council voted on a wide-ranging deal Tuesday night that's designed to finance a entertainment and sports center and keep the NBA's Kings from moving to Seattle. (AP Photo/The Sacramento Bee, Paul Kitagaki Jr.)
— AP

Sacramento Mayor Kevin Johnson celebrates with the Crown Downtown members after the city council voted to finance an entertainment and sports center at City Hall on March 26, 2013 in Sacramento, Calif. Sacramento's City Council voted on a wide-ranging deal Tuesday night that's designed to finance a entertainment and sports center and keep the NBA's Kings from moving to Seattle. (AP Photo/The Sacramento Bee, Paul Kitagaki Jr.)
/ AP

"Mr. Mayor, your attempts to pull off an upset win could adversely affect this community for decades," said attorney and professed Kings fan Jeffrey Anderson, who asked the council to put the plan before voters or he would file a lawsuit to stop it.

Other speakers said the timing of the deal is ironic given that nearby Stockton is in bankruptcy court after over-extending itself with debt, including a minor-league hockey arena.

Development partners compared their vision of a downtown arena to other projects that have revitalized urban areas such as the Staples Center in Los Angeles and the new Barclays Center where the Nets began play in Brooklyn this season. Architect AECOM, tapped to build a new Kings arena, recently completed the Barclays venue.

"I have a lot of faith in this site. It's nothing short of world class," said AECOM's Bill Crockett.

The arena will be built on the west end of city center on the site of the Downtown Plaza, an aging mall that has lost more than half of its sales revenue in the last 10 years as stores have moved to the suburbs. It's just blocks from Interstate 5, a short walk from Amtrak and sits at a gateway to downtown and the city of 475,000.

The city's share is $258 million, the bulk of which would come from event parking collections and ticket surcharges. Nearly all of the city's parking lots are used by government workers who vacate downtown after 5 p.m. The city would own the arena.

The investment group will contribute $189 million to the arena construction and would be responsible for all capital improvements.

The 18,500-seat downtown arena also could host hockey, concerts and family entertainment. The development would include 475,000 in office space, 300,000 in retail space, 250 hotel rooms and 600 housing units.

The arena term sheet includes a 35-year non-relocation agreement with two five-year extensions that would keep the Kings in the city until the last quarter of the century.